Kuka Home Expands Mexico Manufacturing Capacity

March 16, 2022  by Laurie Northington in Business Strategy, Industry   

The company has been producing upholstered furniture, accent chairs and upholstered beds on two campuses near Monterrey, Mexico totaling over 350,000 sq ft, and in their 250,000 sq ft mattress facility, for almost two years.

After a ground-breaking ceremony this April, the company will begin Phase I of the planned total 2.3 million-square-foot manufacturing and office campus in Nuevo Leon. Kuka Home plans to begin shipping motion and stationary upholstery from the facility in Q1 of 2023. Phase II will include adding a showroom, research and development center and a state-of-the-art testing lab.

“Kuka Home is committed to meeting the demand for the North American Market,” said Matt Harrison, president of Kuka Home North America. “With high ocean freight costs and raw material shortages showing no sign of easing, we felt it was imperative to increase our production capacity in Mexico, expanding our capabilities beyond our current upholstery and mattress facilities in Monterrey.”

“The shortened, 4–6-week average lead times we’re achieving from Mexico for stock and special orders enables our customers an alternative to the long lead times with other manufacturers,” added Harrison. “The expansion also will further enhance the efficiency of our supply chain, as our vertically-integrated structure allows us to control everything from raw material purchase to design, development, manufacturing, and distribution.

The new facilities round out Kuka Home’s expansive global manufacturing footprint, which includes five facilities in China, two facilities in Vietnam and two other facilities in Mexico.

The new compound is about twenty minutes from KUKA’s Monterrey facilities and approximately two hours from the Texas border, making it easy for customers to review samples and production.

These facilities will be equipped with efficient production lines, offices, and a cafeteria for employees. “In addition to the equipment and buildings, Kuka Home has invested in our people, with Spanish-Mandarin speaking management from the corporate office and equally bilingual local management who have accelerated our growth in the region by teaching and training years of knowledge and technique very quickly,” said Michael Carter, vice president of sales for Kuka’s mattress division. “A bilingual management team has resulted in first-class efficiency, systems, and product in our Monterrey facility for over a year and will continue with the Nuevo Leon plant.”

The company’s current Mexico upholstery factory has been focused on producing core Kuka fabric stationary sofas, sectionals, accent chairs and upholstered bed silhouettes, along with OEM projects. “With the addition of the new facility, we will be able to add leather and motion seating to the assortment,” said Harrison.

Kuka Home offers a full range of comfort and support options for both memory foam and innerspring mattresses out of the current Mexico mattress facility, and now will be able to ramp up additional production. “We pour all of our foam and produce our pocket spring units in Monterrey, shortening production lead times and allowing for better quality control,” Carter said.